Market News

Cattle futures higher heading into Friday

At the Chicago Mercantile Exchange, live and feeder cattle ended the day higher, supported by follow-through buying.  August live cattle closed $1.22 higher at $134.12 and August feeder cattle closed $3.22 higher at $172.95. 

A very light direct cash cattle trade took place on Thursday.  Dressed deals in Nebraska and Iowa were at $222, fully steady with the week’s previous business. Live deals in the South were at mostly $135. For the week live deals have been at mostly $135, $2 lower than last week’s weighted averages.  Northern dressed deals have been at mostly $222, also about $2 lower than last week’s weighted average basis in Nebraska. 

At the Mitchell Livestock Auction in South Dakota, there was a higher undertone noted on heifers up to 900 pounds.  Heifers 900 to 1000 pounds were $2 to $4 higher.  The USDA says demand was good with many load lots of heavier feeders.  Receipts were down on the week and the year.  Feeder supply included 38% steers and 90% of the offering was over 600 pounds.  Medium and Large 1 feeder steers 814 to 827 pounds brought $155 to $161.75 and feeder steers 991 pounds brought $154.75.  Medium and Large 1 feeder heifers 802 to 825 pounds brought $146.50 to $150.35 and feeder heifers 917 to 942 pounds brought $133.25 to $141.50. 

Boxed beef closed mixed on light to moderate demand for moderate offerings.  Choice closed $.77 lower at $266.65 and Select closed $.72 higher at $249.63.  The Choice/Select spread is $17.02. Estimated cattle slaughter 127,000 head – up 3,000 on the week and up 8,000 on the year. 

Lean hog futures ended the day mostly higher on spread trade with some support from the higher cash and wholesale business.  July lean hogs closed $.25 lower at $112.17 and August feeder cattle closed $.82 higher at $109.75. 

Cash hogs closed mixed with a big negotiated run.  Processors have been fairly aggressive in their procurement efforts and bid up in many cases to move their desired numbers.  Demand for US pork on the global market remains strong, helping provide some price support.  And all eyes remain focused on the availability of market-ready hogs. Barrows and gilts at the National Daily Direct closed $.46 lower with a base range of $110 to $120 and a weighted average of $115.22; the Iowa/Minnesota closed $.61 higher with a weighted average of $116.96; the Western Corn Belt closed $.38 higher with a weighted average of $116.40.  Prices at the Eastern Corn Belt were not reported due to confidentiality. 

Butcher hog prices in Dorchester, Wisconsin are at $70, which are steady.  In Red Oak, Iowa they are lower at $71 and at the Walker Sale Barn in Iowa they’re at $80 to $103. At Illinois, slaughter sow prices were steady with light to moderate demand for light to moderate offerings at $41 to $53.  Barrows and gilts were steady with light demand for light to moderate offerings at $65 to $74.  Boars ranged from $45 to $50 and $10 to $15. 

Pork values are higher up $2 at $112.02.  Bellies, hams, loins, picnics, and butts were all higher.  Ribs were lower. Estimated hog slaughter 475,000 head – even on the week and up 3,000 on the year.